COMM103: Introduction to Mass Media

Unit 12: Economics of Mass MediaThis unit focuses on the inner workings and justifications for mass
media, a very important unit since those elements determine the nature
of media as much if not more than cultural influences. Moreover, given
how you have seen plentiful evidence of the way media influences
culture, you should view this unit and also the next two, which consider
the role of ethics and of the government in regulating products and
behavior of the media, as critical to your understanding of the power as
well as the threats that the mass media can represent. If you are an
American, you may scoff at the idea that the media can be threatening,
but if you come from another culture, chances are you recognize that
already. When economics rather than social need control a force that
has the power to influence opinion and change behavior, who controls
that force, how, and to what end should matter a great deal to you. As
a result, you should work through this unit not only to understand the
business models and challenges faced by modern media but also to become
more familiar with the sometimes uneasy connection between profit and
people that the media also represents.

Unit 12 Time Advisory
This unit should take approximately 4.5 hours to complete.

☐ Subunit 12.1: 1.75 hours

☐ Subunit 12.2: 0.5 hours

☐ Subunit 12.3: 0.5 hours

☐ Subunit 12.4: 0.75 hours

☐ Subunit 12.5: 0.5 hours

☐ Subunit 12.6: 0.5 hours

Unit12 Learning Outcomes
Upon completion of this unit, the student will be able to:
- Contrast the three basic media business models and identify the
business model category or categories of each of the media
industries reviewed in the textbook.
- Contrast the two ways through which media produce revenue.
- Define the term “synergy” and use it in an example involving media
relationships and the Internet.
- Summarize the purpose and impact of the Digital Millennium Copyright
Act.
- Describe the state of digital communication, Internet access, the
information economy, and the digital divide with respect to the
cultures and economies of developed and developing countries.
- Explain the current and potential future impact on the media of the
following issues and recent developments: antitrust legislation,
vertical integration, globalization, hegemony, and McDonaldization.

Instructions: Please focus on understanding the terms used in the
readings and how they drive the review of this unit. In addition,
keep the outcomes listed above in mind as you read so that you are
not only absorbing facts but also the examples, relationships, and
theories that will enable you to use the information you encounter
in the manner the outcomes describe. Note that this reading will
also cover the material you need to know for subunits
12.1.1–12.1.2.
Reading these sections should take approximately 15 minutes.
Completing the exercises associated with these sections may require
an additional 30 minutes.
Terms of Use: This text was adapted by The Saylor Foundation under
a [Creative Commons Attribution-NonCommercial-Share-Alike 3.0
License](http://creativecommons.org/licenses/by-nc-sa/3.0/) without
attribution as requested by the work’s original creator or licensee.

Instructions: Please watch this episode by focusing on how the
explanations and examples the program hosts and student guests
provide supplement the textbook readings. In particular, listen for
content which relates to the unit outcomes and take notes
accordingly, especially when someone uses a specific example to
illustrate a point. Moreover, if you are not as familiar with
American media as the textbook assumes you are, you might benefit
from listening carefully to the discussions and then writing down
the names of media, media personalities, or media products with
which you are unfamiliar. When you’ve finished watching, use the
Internet to research any unfamiliar references so that you will be
prepared if those references appear in the final exam.

Watching this lecture should take approximately 1 hour.

Terms of Use: Please respect the copyright and terms of use
displayed on the webpage above.

12.1.1 Raising RevenueNote: This subunit and the subunits beneath (12.1.1.1–12.1.1.8) are
covered by the reading assigned for subunit 12.1. They are introduced
by major or minor subheadings in section 13.1 of the textbook. Please
focus your attention when reading this material on the similarities and
differences in the business models used by the various media. Why does
one model work for some but not for all?

12.1.1.1 Print MediaNote: This subunit is covered by the reading assigned for subunit
12.1.

12.1.1.2 NewspapersNote: This subunit is covered by the reading assigned for subunit
12.1.

12.1.1.3 MagazinesNote: This subunit is covered by the reading assigned for subunit
12.1.

12.1.1.4 Television and RadioNote: This subunit is covered by the reading assigned for subunit
12.1.

12.1.1.5 Music and FilmNote: This subunit is covered by the reading assigned for subunit
12.1.

12.1.1.6 The Big FourNote: This subunit is covered by the reading assigned for subunit
12.1.

12.1.1.7 Consolidation and TicketingNote: This subunit is covered by the reading assigned for subunit
12.1.

12.1.1.8 FilmNote: This subunit is covered by the reading assigned for subunit
12.1.

12.1.2 New Media, Old ModelsNote: This subunit is covered by the reading assigned beneath subunit
12.1. Once you have finished reading, consider the importance of
original content with respect to how you use media. Where do you go for
original content? Does the origin of your information matter to you?
Are there times when you think the origin of content should matter? If
yes, how do you think that affects the business models of media which
originate content?

Instructions: Please focus on understanding the terms used in the
readings and how they drive the review of this unit. In addition,
keep the outcomes listed above in mind as you read so that you are
not only absorbing facts but also the examples, relationships, and
theories that will enable you to use the information you encounter
in the manner the outcomes describe. Note that this reading will
also cover the material you need to know for subunits
12.2.1–12.2.2.
Reading this section should take approximately 15 minutes.
Completing the exercises associated with this section may require an
additional 15 minutes.
Terms of Use: This text was adapted by The Saylor Foundation under
a [Creative Commons Attribution-NonCommercial-Share-Alike 3.0
License](http://creativecommons.org/licenses/by-nc-sa/3.0/) without
attribution as requested by the work’s original creator or licensee.

12.2.1 Online Synergy: Internet by GoogleNote: This subunit is covered by the reading assigned beneath subunit
12.2. Pay particular attention to the points made about free material
online, its relationship to the elements people and companies are
willing to pay for, and what currency is used when payment is rendered.

12.2.2 Problems of Digital DeliveryNote: This subunit and the subunits beneath (12.2.2.1–12.2.2.3) are
covered by the reading assigned for subunit 12.2. They are introduced
by major or minor subheadings in section 13.2 of the textbook. After
reading this subsection, you should be able to explain and provide
examples of why the Internet and other digital delivery platforms can be
problematic for some.

12.2.2.1 Google NewsNote: This subunit is covered by the reading assigned for subunit
12.2.

12.2.2.2 Music and File SharingNote: This subunit is covered by the reading assigned for subunit
12.2.

12.2.2.3 Video StreamingNote: This subunit is covered by the reading assigned for subunit
12.2.

Instructions: Please focus on understanding the terms used in the
readings and how they drive the review of this unit. In addition,
keep the outcomes listed above in mind as you read so that you are
not only absorbing facts but also the examples, relationships, and
theories that will enable you to use the information you encounter
in the manner the outcomes describe. Note that this reading will
also cover the material you need to know for subunits
12.3.1–12.3.2.
Reading this section should take approximately 15 minutes.
Completing the exercises associated with this section may require an
additional 15 minutes.
Terms of Use: This text was adapted by The Saylor Foundation under
a [Creative Commons Attribution-NonCommercial-Share-Alike 3.0
License](http://creativecommons.org/licenses/by-nc-sa/3.0/) without
attribution as requested by the work’s original creator or licensee.

12.3.1 The Informational Shift: Computer Skills and Older WorkersNote: This subunit is covered by the reading assigned beneath subunit
12.3. To absorb this material more effectively, place yourself into the
picture. Where are you on a continuum of computer skills and age?
Which of the points brought out in the reading apply to you or someone
you know?

12.3.2 The Digital Divide Abroad: The Bottom BillionNote: This subunit is covered by the reading assigned beneath subunit
12.3. By the time you finish reading this material, you should have a
firm grasp of what the digital divide is on a personal, local, national,
and international level. Be prepared to describe similarities and
differences in the impact of the divide on different levels.

Instructions: Please focus on understanding the terms used in the
readings and how they drive the review of this unit. In addition,
keep the outcomes listed above in mind as you read so that you are
not only absorbing facts but also the examples, relationships, and
theories that will enable you to use the information you encounter
in the manner the outcomes describe. Note that this reading will
also cover the material you need to know for subunits
12.4.1–12.4.3.
Reading this section should take approximately 15 minutes.
Completing the exercises associated with this section may require an
additional 30 minutes.
Terms of Use: This text was adapted by The Saylor Foundation under
a [Creative Commons Attribution-NonCommercial-Share-Alike 3.0
License](http://creativecommons.org/licenses/by-nc-sa/3.0/) without
attribution as requested by the work’s original creator or licensee.

12.4.1 Regulation of the Information EconomyNote: This subunit and the subunits beneath (12.4.1.1–12.4.1.2) are
covered by the reading assigned for subunit 12.4. They are introduced
by major or minor subheadings in section 13.4 of the textbook. As you
are reading this material, try to tie together the successive laws and
regulations. Can you spot the trends and/or identify what is driving
the progression? What level of control do you think we are heading
toward: more or less? How dependent on developments in politics or
economics are regulatory and legislative acts in this area?

12.4.1.1 A Brief History of Antitrust LegislationNote: This subunit is covered by the reading assigned for subunit
12.4.

12.4.1.2 Deregulation and the Telecommunications Act of 1996Note: This subunit is covered by the reading assigned for subunit
12.4.

12.4.2 Media Conglomerates and Vertical IntegrationNote: This subunit and the subunits beneath (12.4.2.1–12.4.2.2) are
covered by the reading assigned for subunit 12.4. They are introduced
by major or minor subheadings in section 13.4 of the textbook. As you
read through this material, see if you can connect the terms “economies
of scale” and “switching costs” to some aspects of vertical integration
and also whether you can connect the concept of “experience good” to
some ethical issues involving vertical integration.

12.4.2.1 Corporate Advantages of Vertical IntegrationNote: This subunit is covered by the reading assigned for subunit
12.4.

12.4.2.2 Ethical Issues of Vertical IntegrationNote: This subunit is covered by the reading assigned for subunit
12.4.

12.4.3 The Issues of the InternetNote: This subunit and the subunits beneath (12.4.3.1–12.4.3.2) are
covered by the reading assigned for subunit 12.4. They are introduced
by major or minor subheadings in section 13.4 of the textbook. After
you finish reading this subsection, you should be able to identify
several examples of business-oriented issues which face companies who
use digital technology and/or the Internet for commerce.

12.4.3.1 Digital Downloads and DRMNote: This subunit is covered by the reading assigned for subunit
12.4.

12.4.3.2 PiracyNote: This subunit is covered by the reading assigned for subunit
12.4.

Instructions: Please focus on understanding the terms used in the
readings and how they drive the review of this unit. In addition,
keep the outcomes listed above in mind as you read so that you are
not only absorbing facts but also the examples, relationships, and
theories that will enable you to use the information you encounter
in the manner the outcomes describe. Note that this reading will
also cover the material you need to know for subunits
12.5.1–12.5.2.

Reading this section should take approximately 15 minutes.
Completing the exercises associated with this section may require an
additional 15 minutes.

12.5.1 Vertical Integration and GlobalizationNote: This subunit is covered by the reading assigned beneath subunit
12.5. It is introduced by a major or minor subheading in section 13.5
of the textbook. In this reading, pay particular attention to the
concept of a “cultural product” and its relationship to globalization.

12.5.2 Foreign Markets and TitanicNote: This subunit is covered by the reading assigned beneath subunit
12.5. Once you finish reading this subsection, try to come up with
another product like Titanic, which illustrates the globalization of a
cultural product.

Instructions: Please focus on understanding the terms used in the
readings and how they drive the review of this unit. In addition,
keep the outcomes listed above in mind as you read so that you are
not only absorbing facts but also the examples, relationships, and
theories that will enable you to use the information you encounter
in the manner the outcomes describe. Note that this reading will
also cover the material you need to know for subunits
12.6.1–12.6.2.
Reading this section should take approximately 15 minutes.
Completing the exercises, end-of-chapter assessment, critical
thinking questions, and career connection associated with this
section may require an additional 30 minutes.
Terms of Use: This text was adapted by The Saylor Foundation under
a [Creative Commons Attribution-NonCommercial-Share-Alike 3.0
License](http://creativecommons.org/licenses/by-nc-sa/3.0/) without
attribution as requested by the work’s original creator or licensee.

12.6.1 Cultural HegemonyNote: This subunit and the subunits beneath (12.6.1.1–12.6.1.2) are
covered by the reading assigned for subunit 12.6. They are introduced
by major or minor subheadings in section 13.6 of the textbook. It is
very important that you read this material with the goal of gaining a
solid understanding of the connection between cultural hegemony and
McDonaldization. What are the dangers the author asserts? Can you
justify them or do you think they are overblown?

12.6.1.1 Spreading American Tastes through McDonaldizationNote: This subunit is covered by the reading assigned for subunit
12.6.

12.6.1.2 McDonaldizing MediaNote: This subunit is covered by the reading assigned for subunit
12.6.

12.6.2 Cultural Imperialism, Resentment, and Terrorism: Freedom,
Democracy, and Rock ‘n’ RollNote: This subunit is covered by the reading assigned beneath subunit
12.6. Similar to the previous unit, it is important that you use this
material to connect the concept of hegemony to criticisms of cultural
imperialism.